A strong and sustainable healthy university

Utrecht University (UU) faces a tough task in the coming years. In 2025, the university has to cut 35 million euros. With government measures still to come, this could rise further to 70-80 million euros in 2029. To remain a financially healthy university, focus, sharp choices and adjustments are necessary. 

Strategic ambitions remain guiding 

UU's ambitions remain guiding: high-quality education, distinctive research and professional operations. Our profile is largely defined by the four Strategic Themes, in which strong disciplines collaborate in both research and education. For our education, we are committed to the Utrecht Educational Model, which focuses on a solidacademic basis, connection with society and personal development. In our operations, we continue to work on effectiveness, innovation, sustainability and professionalism.  

Also read the interview 'Five questions about the budget cuts to Vice President Margot van der Starre'. 

The UU sustainability plan for financial stability 

UU's package of measures sets out five main lines of action to ensure its long-term financial stability. These measures add up to a budget reduction of around ten per cent in the long term. It is a plan with a preventive, forward-looking approach. In doing so, we will continue to invest and innovate in the coming years, in line with our strategy. 

1. Cross-unit measures  

Last September and October, the Executive Board, deans and directors jointly inventoried cost-saving options and made choices, some of which are far-reaching, yet are considered necessary. Some measures can be implemented from 2025, such as reducing the IT portfolio (offering fewer applications) and limiting external hiring. It is also being considered to phase out faculty honours programmes within Bachelor’s programmes by September 2025. Other measures will require further cost-benefit analysis and elaboration, also to properly align measures. 

2. Cost-saving measures by faculty 

Faculties take additional measures and ensure that they maintain sufficient reserves to remain financially healthy. These include postponing or cancelling investments, a selective vacancy freeze and involving staff in new projects to reduce external hiring. 

3. Sustainability Faculty of Humanities 

The financial situation of the Faculty of Humanities has been vulnerable for several years. The budget shows a strong negative result until 2027, which will further increase after that if no action is taken. Drastic measures are needed for sustainable operations. To this end, the faculty has drawn up a transition plan. 

4. Plan of action Corporate Offices 

The Corporate Offices (UBD) are facing a significant financial deficit which is expected to grow in 2026 and 2027. This is caused by a combination of factors including national budget cuts, lower student numbers and rising costs. Structural cuts are necessary. For 2025 some measures have already been identified. A sustainable financial plan is being developed for the coming years. 

The deficits call for sharp choices and reconsideration of the university's service priorities. In doing so, we are looking at which innovations we can postpone, and which are necessary to remain future proof. Measures include (among other things) digitalisation and standardisation of processes and services, a reduction of the USO fund for educational innovation in 2025 and a vacancy restriction. Because these measures affect the faculties, the measures will be worked out and implemented together with the faculties over the next few years. 

Integrated approach 

As many cross-unit measures also affect the Corporate Offices, and vice versa, these lines will be integrated as much as possible. The whole is set up and managed as a programme and embedded in portfolio management. 

5. Responsible investments in housing 

The university aims to spend no more than 15% of its total revenue on housing costs. In the spring of 2024, a real estate board was established to explore ways to keep housing costs below 15%. Managing the university's housing needs is already a challenge, both financially and organisationally, but as the university’s revenue is now declining, this is becoming even more difficult. The real estate board is currently exploring how cost savings can be achieved, for example by temporising projects. At the same time, the university continues to make sustainable investments in real estate.